Why parents need life insurance: 5 reasons to get it now
As a parent, your children are at the center of everything you do. You work hard to provide them with whatever they need to become successful members of society. However, one such necessity is often kept on the back burner until it's too late — life insurance.
Parents of younger children often think life insurance can wait as they have much more life to live. Parents of adult children may feel as though life insurance isn't much of a necessity at this stage. But no matter how old your children are, if you're a parent, you need life insurance.
Find out how affordable it can be to protect your children now.
5 reasons parents need life insurance
The simple fact is that there's no time clock on this thing we call life. It often ends abruptly. So, it's important to plan for the unexpected. Here are five reasons parents need a life insurance policy:
To cover the cost of day-to-day life
Your children likely depend on you financially. Chances are they either depend on you for 100% of their financial needs or call on you from time to time. Unfortunately, you won't be there to answer the call after you pass.
Elizabeth Simpson, an estate planning attorney in Marianna, Florida, points out that life insurance provides your kids with financial stability "until they start receiving your social security or whatever benefits you might get."
Social Security survivor benefits can take a couple of months to kick in. The same goes for survivor pensions. Life insurance payouts can provide a buffer for this time period.
Find out your life insurance rate today.
To leave something behind for your kids
Parents always want to leave something behind for their children. Of course, money isn't everything, but you want to know that your children are well taken care of when you die. Life insurance gives you a way to do just that with a reasonable monthly cost.
The average monthly premium for a $500,000 life insurance policy is around $30. Of course, that may be higher or lower depending on factors like your age, health and other demographics.
To settle debts
Debt is commonplace in the United States and around the world. Unfortunately, debt can haunt you even after you die. That's because your estate is liable for any outstanding debts you have when you pass.
For example, let's say your estate consists of a home worth $200,000 and about $50,000 in cash and other liquid assets. Let's also say you pass away with $65,000 in debt. Your children may be forced to sell your family home in order to settle the debts you left behind.
On the other hand, a simple life insurance policy would cover your debts, leaving your family home available for your children.
To ensure that your end-of-life expenses are covered
Another thing to note, according to Simpson, is that end-of-life expenses can be surprising. You need life insurance so your children "will have the ability to take care of your last wishes such as burial," Simpson says.
That's great advice.
The average funeral in the United States costs about $7,850 if it includes a viewing and $6,970 without one. That's an expense you don't want to leave for your children to have to worry about amid their grieving.
To cover educational expenses
Most parents dream of watching their children graduate college and earn a respectable living. On the other hand, college is expensive and scholarships can be difficult to come by. That's why so many parents pay for their children's college education.
But who would pay for your children's education if you pass away before you're able to?
That's where life insurance comes in. A life insurance policy can take care of your children's education expenses, giving them the leg up you always intended to provide.
The bottom line
The bottom line is that nobody knows exactly when their days on this planet will come to an end. As parents, our job is to protect and support our children now and in the future. Life insurance makes doing so a possibility, even after death.
"I always think life insurance is a good thing to have," Simpson says.
